Trinidad and Tobago Manufacturers’Association ANNUAL REPORT 2018
1 ANNUAL REPORT 2018 CONTENTS
VISION AND MISSION 2
MESSAGE FROM THE PRESIDENT 4
MESSAGE FROM THE CEO 7
BOARD OF DIRECTORS 8
BUSINESS DEVELOPMENT 14
MARKETING AND EVENTS 20
TRADE FACILITATION 22
TRADE AND INVESTMENT CONVENTION 28
TTMA 2018 FINANCIAL STATEMENTS 30 VISION To be the voice of manufacturers in Trinidad and Tobago, creating value and providing world class service to our membership.
MISSION Increasing the value and growth of the manufacturing sector in Trinidad and Tobago.
2 ANNUAL REPORT 2018 3 ANNUAL REPORT 2018 MESSAGE FROM THE PRESIDENT MR. CHRISTOPHER ALCAZAR
2018 was eventful for manufacturing and our Our manufacturers have not taken the responsibility organisation with an unprecedented number of of this national directive lightly and continued to members of almost 500 in our history of over 60 challenge ourselves in finding new markets and years of championing the needs of our industry. growing existing ones in a quest to improve our This is undeniably a testament to the optimism nation’s foreign exchange position while building engendered within our sector during this period the economy of tomorrow. of time in our nation’s history.
With the ambitious mandate in 2018 to significantly expand market share of our offerings particularly through export, the Association remained dedicated to assist companies to transform their businesses and achieve sustainable growth. Though we recorded moderately impressive sector We recognised that we must do all within our growth during the last year of 7.3 percent after a control in order to remain ready to compete negative 2.6 percent in 2017, competing in the on the global stage. Without great efforts in global context has had its fair share of difficulty. ensuring our offerings to international consumers Our pursuit has not been to simply grow but to are relevant, high quality and cost effective, it grow quickly to become a viable and sustainable would be impossible to realistically compete on source of GDP for our nation long after our energy the international market. reserves are exhausted. Unfortunately, faced with a slew of disadvantageous circumstances In building our strategy to facilitate accelerated such as low national productivity and work growth of our industry, our Proudly T&T campaign ethic, governmental agency bureaucracy and became more relevant than ever as it addressed a debilitating VAT refund issue, the TTMA is a mindset shift for all parties which is required for concerned that the speed at which the sector can success. This campaign has been instrumental in grow will continue to be impeded by these factors highlighting the tremendously positive impact if not mitigated. that the local manufacturing sector has had on the nation’s citizenry and economy. Notwithstanding, in 2018 we continued to encourage our members to persevere and to Proudly T&T has managed to leverage a positive continuously transform ourselves so as to meet tone and productive conversation between the evolving local and international markets. manufacturers and the wider national community. As a body, we have advocated for corporate In fact, the TTMA sees the campaign as larger than transformation of individual companies lamenting ourselves as it is working to transform not only that even though it is often a slow and painful how the public views the manufacturing sector exercise, it is necessary for survival and growth. but how we as a people see ourselves.
In 2019, we will continue to drive this growth agenda towards the achievement of the diversification goals of our nation, knowing that together as individual manufacturers working towards one goal, the possibilities are endless and we can do it.
5 ANNUAL REPORT 2018 Through Proudly T&T, we are demonstrating that affected by flooding, our sector stood out as a national pride can be channeled in a manner that leader in humanitarian efforts. The speed at which can transform us into a more productive nation. our sector rallied to reach the victims of flooding and the generosity displayed was nothing short Our trade missions to Jamaica and Guyana in the of astounding. It was a testament to what we as past year were successful. We are pleased to note a group of citizens in business working for the that we were instrumental in securing the EXIM national interest can do. A heartfelt thank you to Bank Forex facility offered by the Government to our members for rising to this challenge. address the challenges faced in this area. The Trade and Investment Convention (TIC) 2018 was As I pen this last message as the President of the our largest to date recording a visitation of over TTMA, I would like to encourage all members to 15,000 individuals and is on a path to undoubtedly get involved in whatever way possible to grow continuing this growth in each successive year. and transform the local manufacturing industry. The show sought to bring the right buyers to allow I am grateful for having had the opportunity to local businesses to expand into new markets, serve our esteemed members and would like to embodying the theme of 2018’s convention “New state that we must continue to press on despite Horizons, New Opportunities”. deterrents and forge and sustain a meaningful partnership between our manufacturers and the It would be remiss of me if I do not recognise so Government. Without this partnership, neither of many of our members who during our nation’s time us would survive and thrive in the long-term. of need when so many citizens were adversely
6 ANNUAL REPORT 2018 The year once again saw a successful staging of the Trade and Investment Convention. TIC MESSAGE marked its 19th year and has again proven to be FROM THE the largest trade show of its kind in the region that is geared towards creating business, trade and investment for local businesses. The Convention CEO saw over thirty countries having a representation DR. MAHINDRA RAMDEEN with exhibitors and buyers coming in from all over the world.
Throughout 2018, the Trinidad and Tobago As we move into 2019, TTMA remains committed Manufacturers’ Association continued to be the to providing its services to the members and we are voice of the manufacturing sector. The Association confident that in the face of unforeseen challenges, continues to push forward and provide world class the sector is more than equipped to rise above services to our membership whilst increasing value them. The President, CEO and Secretariat of the and growth of the Manufacturing Sector. The year TTMA are committed to bringing value to our commenced with a renewed sense of optimism members, lobbying on their behalf and to offering for prosperity and an even greater impetus for the support and guidance to the manufacturing sector. sector to take the lead on diversification. With continued effort and partnering with you, our stakeholders, we are hopeful that our goals of The TTMA continues to partner with local growth and diversification can be actualized. organizations to improve the competitiveness of the sector. We endeavour to create new relationships, break into new markets, build more business, earn more forex and increase employment. The TTMA continues its push forward with the Proudly T&T Campaign with the goal remaining the same: inspiring the country to strive for a better T&T.
The TTMA pushes forward in its drive to increase the size of the membership by providing opportunities for its members for market expansion. In 2018 the Association hosted its outward trade mission to Jamaica and Guyana, which was successfully engaged. TTMA continues to lobby on behalf of its members to find solutions to the US currency supply constraints by having regular meetings with the relevant entities.
7 ANNUAL REPORT 2018 BOARD OF DIRECTORS
MR. CHRISTOPHER ALCAZAR PRESIDENT Christopher Alcazar is currently the CEO of Vemco Limited, a leading manufacturer and distributor of FMCG in the Caribbean. His previous experience at Associated Brands Industries Ltd (ABIL) laid the foundation for his knowledge in the creation of home grown products which would eventually be exported to other territories. His sheer business expertise and meticulous monitoring of global trends and best practices allow him to position Vemco a step ahead of its competitors. As a graduate in Business from the University of Tampa, Florida and a background in business development, product conceptualization, and marketing, Christopher Alcazar has always been an advocate of growing export market share within CARICOM, Latin America and key international markets. Passionate about changing the landscape of the economy of Trinidad and Tobago- its people, its development, its economy, its social aspects- Christopher has diversified his portfolio by serving the last two years as the President of the Trinidad & Tobago Manufacturing Association (TTMA). This allowed him to be a voice for manufacturers trying to get their business going and sees the association as an opportunity to improve the way people serve on a national scale and thus can contribute to nation-wide development.
MS. FRANKA COSTELLOE FIRST VICE PRESIDENT Ms. Costelloe holds a (MSC) Master’s Degree in Building and Construction Management (with distinction), an (MBOS) Associate Degree in Project Management and a (BSC) Bachelor of Science Degree in Business Administration with a Major in Human Resources and Masters Certificate in Coprorate Governance.
Franka Costelloe is a Director of Lifetime Roofing Ltd; a manufacturer, distributor and contractor specialized in metal and flat roof waterproofing. She has experience in various departments including; Human Resources, Project Management, Contracts, Budget Planning & Administration, Sales and Marketing.
Ms. Costelloe currently sits on the Trinidad and Tobago Manufacturer’s Association Board, First Citizens, First Citizens Investment Services, First Citizens Trustee and Chairs the Human Resource Committee of First Citizens
8 ANNUAL REPORT 2018 DR. MIKAEEL MOHAMMED SECOND VICE PRESIDENT Dr. Mikaeel Mohammed is a graduate of the Royal College of Surgeons in Ireland, where he attained his M.B., B.Ch, B.A.O. credentials. He holds certifications in executive leadership from various Business schools, most recently, Harvard Business School. At present Dr. Mohammed is Chief Executive Officer of Jaleel Distributors Limited, S.M. Jaleel’s Sales and Distribution Companies. Dr. Mohammed also functions as a Director and Corporate Secretary of S.M. Jaleel and is the owner of several independent successful business enterprises.
MR. ROBIN LEWIS DIRECTOR Robin Lewis joined First Citizens as the GM Retail and Commercial Banking in April of 2012. He holds a Diploma in Business Management from the University of The West Indies and an MBA from the University of Lincoln in London. Mr. Lewis is a career banker with over 30 years’ experience in the financial services industry. The majority of his career was spent with a local financial services provider gaining experience in all aspects of banking operations. His prior appointment was at director level with another major regional financial institution with responsibility for Banking Operations for the Retail Wealth and Small Business groups, including Branch Banking, Electronic Channels and Call Centres. He currently sits on the Board of the Trinidad & Tobago Manufacturers’ Association.
MR. ANTHONY FARAH DIRECTOR Anthony G. Farah is the General Manager of MDC-UM, the largest manufacturer of office furniture in the region. After graduating with a degree in Business Administration from Miami Dade Community College, Mr. Farah gained 17 years of experience from a host of industries in the United States. Anthony returned to Trinidad to help develop MDC-UM’s strategic alliances with large furniture manufacturers in North America, China, Europe and India. As a consultant and project manager he has helped ensure that local content is maximized on projects in the Caribbean.
9 ANNUAL REPORT 2018 MR. PHILLIP AGOSTINI DIRECTOR Mr. Philippe Agositini is the current Executive Chairman of CGA Ltd since assuming the office in 2003. Previously, Mr. Agostini served as a Chairman and Director of CGA Limited from 2003-1995 and 1985-1995 respectively. Mr. Agostini is also the Managing Director of F.A. Agostini Estates Ltd, a family holding company. Mr. Agostini has served on many other associations. He is the Past President of the Agricultural Society of T & T, Past Chairman of Cocoa Research Advisory Committee (aka the cocoa Research Unit at UWI), Founder/ President of the Caribbean Agribusiness Association and the Chairman of the Caribbean Oils & Fats Association and others.
MR. GEORGE NAIME DIRECTOR George Naime (GN) a former student if Harrisons College, is a founding partner of the B. E. Naime Group of companies (BEN) that was established in 1980 in Barbados. After the sale of the retail and manufacturing divisions of the BEN group in Barbados, Mr. Naime relocated to Trinidad and Tobago in 1992 and launched the PROTOX Aerosol Insecticide and Angel Liquid Detergent range of products. In 1993, Mr. Naime was also responsible for expanding the BEN group into the Energy Sector of Trinidad and Tobago by the establishment of Aerogas Processors Limited (APL) in 1998. A joint venture with the Rahael Group of companies. In 2012, with his partners, Joseph Naime and Tony Paul formed a company, BEN LNG, which is geared to provide supply chain solutions for applications of Natural Gas Derivatives as power plant displacement Fuels in the Caribbean. He also established Five Star Private Members Club in 2012. In 2016, he was appointed Director of TTMA, currently Chair of Standing Committee on Trade and representative member of PLCC on Energy Sector.
MR. RYAN LEWIS DIRECTOR Ryan Lewis is the Executive Director of Label House Group Limited. Mr. Lewis has extensive experience in marketing and finance having worked both locally and abroad. Mr. Lewis holds an MBA Marketing and Finance from University of Miami and a B.Sc. Business Administration from Florida Institute of Technology.
10 ANNUAL REPORT 2018 MR. IAN MITCHELL DIRECTOR Mr. Ian Mitchell has over nineteen years experience in the manufacturing sector, having held managerial positions at WITCO and Bermudez Biscuit Company Limited where he last served as General Manager. Mr. Mitchell holds an International MBA as well as a B.Sc. Industrial Engineering, and a Post Graduate Diploma in Finance. Mr. Mitchell was a mentor with the Arthur Lok Jack Graduate School of Business and is currently the Managing Director at ANSA Polymer.
MR. RODNEY COWAN DIRECTOR Rodney Cowan is the Marketing Manager of Trinidad Cement Limited operations in Trinidad and supports the Commercial activities of the Barbados business unit. He is the holder of a B.Sc. in Management Studies from the University of the West Indies (St Augustine) and earned an MBA from the Herriot-Watt University.Mr. Cowan currently serves as a Director on the Board of the Trinidad and Tobago Contractor’s Association.
MR. DALE PARSON DIRECTOR Dale Parson is the CEO of KPL Group Ltd, a diversified group in the Manufacturing and Distribution Industry in Paints, Adhesives, and Brewery/ Beverage products. Mr. Parson holds a BSc in Engineering and an MSc in Strategic Leadership and Management from the University of the West Indies. He is currently pursuing his PhD in Business Administration with concentration in Marketing. Mr.Parson is a member of Board of Engineers of Trinidad and Tobago (BOETT) and Association of Professional Engineers of Trinidad and Tobago (APETT). As the Chief Executive Officer of a regionally recognised privately held organisation, Mr. Parson has acquired extensive knowledge and experience in manufacturing, competitiveness, international trade, management, international business operations and strategic planning. His background provides the TTMA board with a broad scope of expertise in the manufacturing industry particularly in strategic planning, trade agreement negotiations and competitiveness. .
11 ANNUAL REPORT 2018 MS. TRICIA COOSAL DIRECTOR Tricia Coosal is a graduate of the University of Miami with an MBA from Nova Southeastern University. Ms.Coosal has over six years experience as an Executive Director of Finance and Administration at Coosal’s Group of Companies. Ms.Coosal is also Founder, Managing Director and Corporate Secretary of Top Class Distributors Limited.
MR. PATRICIO TORRES DIRECTOR Patricio Torres, was appointed the Head of Market for the Anglo-Dutch Caribbean at Nestlé Trinidad and Tobago Limited in September 2017. Patricio joined Nestlé 23 years ago when he started as a Professional Trainee in Chile. He then worked in several sales areas for Confectionery, Coffee, Ambient Dairy and Culinary. In 2003, he started his international career in Brazil as part of the Global Business Excellence team in generating demand, implementing best practices and commercial processes across Zone Americas. He returned to Nestlé Chile in 2005 joining the Ice Cream Business in Marketing, after which he joined the Ice Cream Strategic Business Unit in 2008, taking responsibility for sales and distribution for Zone Americas, Europe and Africa, Oceania and Asia. He later became Country Manager at Nestlé Paraguay in 2010 before assuming his role as Business Executive Officer, Savory Ice Cream in Nestlé Chile in 2012. Patricio holds a Bachelor’s Degree in Business Administration from the University Diego Portales in Chile, an MBA from Pontificie Catholic University in Chile as well as a PED Executive IMD from Switzerland.
MR. GARY AWAI DIRECTOR Mr. Awai has a banking career spanning over 30 years, in which he has held several senior management positions at various local banks including most recently, Deputy CEO at Intercommercial Bank Limited (now JMMB Bank). He is a Chartered Professional Accountant and member of the Society of Management Accountants of Nova Scotia, Canada, holds a Masters in Business Administration from Andrews University, Michigan and Bachelors in Business Administration from the University of New Brunswick, Fredericton, Canada. He has an extensive background in Treasury Risk Management, Strategic Management Accounting, Correspondent Banking, Structured Trade Finance, Compliance, Corporate Finance and Marketing and Sales,
12 ANNUAL REPORT 2018 with strong emphasis in Treasury Operations, specifically Foreign Exchange and Dealing, where he has spent much of my career to date. Mr. Awai is a founder member of the Caribbean Financial Planning Association and a former director and past Vice President of both the Securities Dealers Association of Trinidad and Tobago and the Institute of Banking and Finance. He has also sat on the Trade Committee of the Bankers’ Association of Trinidad and Tobago (BATT). Additionally, He has been a part-time lecturer in the Special Degree in Banking and Finance at the University of the West Indies for the past eleven (12) years.
MR. JOHN DE SILVA DIRECTOR John De Silva is an experienced FMCG Executive and was appointed Managing Director of Unilever Caribbean Ltd. in November 2017. Mr. De Silva has over 20 years experience in General Management, Supply Chain, Operations, and Finance, having worked in Trinidad, Jamaica, Switzerland, The Dominican Republic and Mexico. Most of that time was spent with Nestlé, holding senior executive positions including Director at Nestlé Jamaica, General Manager of Nestlé Caribbean Inc., and Nestlé Professional’s Head of Supply Chain and Operations for Latin America.He has led the integration of acquired businesses, established Regional Shared Services, developed and executed manufacturing and operations improvement strategies, implemented Customer Service Excellence initiatives and turned around under-performing commercial operations through Consumer and Customer engagement, restructuring and cost-reduction and strengthening of Global Brands.John is a Fellow of the Association of Chartered Certified Accountants of the UK and an alumnus of IMD Business School, Switzerland.
MR. COLIN S. SABGA CORPORATE SECRETARY Mr.Colin Sabga holds a Bachelor of Laws degree from the University of Bristol with a specialisation in Private Equity, and a Masters of Law (with distinction) from University College London with a specialisation in International Banking and Finance. He subsequently completed the Bar Vocational Course at the College of Law, London and the Legal
Education Certificate at the Hugh Wooding Law School. He is a member of the Honorary Society of the Inner Temple and the Law Society of Trinidad & Tobago. In 2013, Colin joined the BCL Group of Companies full time as Executive Director responsible for new business development.
13 ANNUAL REPORT 2018 BUSINESS DEVELOPMENT UNIT 2018-2019
INTRODUCTION 2018 – 2019 can be most aptly described as a year of incremental growth for the Business Development Unit, a description that holds true for the rest of the Association. Collectively, this unit has worked consistently to achieve specific performance indicators in the areas of Advocacy & Legislation, Transport and Logistics, employment and database development for export market penetration. This year also saw an increase in the staff complement of the unit, so as to achieve higher levels of productivity and performance for the membership.
ADVOCACY & LEGISLATION • VALUE ADDED TAX – OUTSTANDING REFUNDS AND RECOMMENDATIONS Consistent work has been done to achieve tangible gains for members that continue to be owed VAT Refunds for an extended period. Correspondence and meetings have taken place at the highest level within the Ministry of Finance overall and, more specifically, with the Inland Revenue Division. Limited success has been reported by some members who have received refunds for refunds that are smaller in size, in part due to the consistent efforts of the Association.
However, it remains concerning that some of the larger refunds owed to a high percentage of the membership have not yet been paid. In the upcoming year, more intensive efforts will be undertaken to successful application, but this has not been met achieve greater relief for the TTMA’s membership with positive responses thus far. However, the in this area. number of manufacturers accessing the facility has been increasing slowly but steadily. With reference to recommendations, this year saw the TTMA advocate for an offsetting of future VAT The ongoing concerns of the membership in payments against outstanding refunds, as well as terms of access to US currency to meet their the removal of VAT on raw materials. Given the supplier obligations remains an issue of active significant magnitude and positive implications advocacy for our membership; while the financial of these recommendations for the TTMA’s sector restrictions remain somewhat unabated, membership, it is hoped that this year will see at the TTMA has been working arduously to improve least one of them adhered to, by or before the the export earning capacity of its members. In this Appropriation Bill for next year. regard, the BDU has commenced work with the TTMA’s Trade Unit to host a Trade Mission in the Our Association also met with the project first half of 2019, which is geared toward tapping coordinating committee for the Trinidad and into new business within the region (and ideally, Tobago Revenue Authority (TTRA). At this meeting, outside of conventional Caricom markets). the TTMA’s position for the proposed TTRA (which is likely to come on stream in the upcoming year) is to address the inherent weaknesses in • BEVERAGE CONTAINER BILL the tax collection and refund payment system. 2018 – 2019 also saw the Beverage Container Bill This was well received and taken strongly into being raised again by the government, and was consideration. unsurprisingly met with a strong response by the TTMA. The current push for implementation of this legislation resides with the Ministry of Public • ACCESS TO FOREIGN EXCHANGE – Utilities, with whom the TTMA met in December FOREX FACILITY FOR MANUFACTURERS 2018 along with a large number of its members The BDU has been in regular contact with its in the beverage industry. Subsequent to this, membership, along with Eximbank, to the TTMA has re-convened its Beverage Bill ensure that manufacturers receive the Committee, which was inactive for several years highest possible benefit from the due to the Parliamentary lapse of the legislation. ForEx facility. There was some advocacy for a Given that this renewed focus on the legislation revision of the occurred in the latter half of the year, work on criteria for formulating new consensus positions amongst the manufacturers is only now underway; notwithstanding this, the TTMA has already signalled its desire for a very lucid, workable and effective legislation to the government. Advocacy in this area will remain very strong in the upcoming year. • PUBLIC PROCUREMENT AND DISPOSAL In addition, the TTMA established new, strategic OF PUBLIC PROPERTY data collection efforts in this area, to assess its The TTMA’s work in this area continues to be members experiences and assist in charting a way advanced through its successful partnership with forward for legislative reform. This takes the form the Private Sector Civil Society Group (PSCSG), of surveys, analysis and further collaboration with which comprises of all the major Chambers of the Joint Chambers of Commerce for Industrial Commerce and various other stakeholders in Relations. the construction industry. At this juncture, the legislation continues to be dependent on its TRANSPORT AND LOGISTICS associated regulations, the latter of which have The TTMA worked closely with the Customs and not yet been brought into effect. Excise and the major ports of entry to alleviate various challenges being faced by the membership Our Association (along with the PSCSG) met with in 2018 – 2019. Two of the major areas of advocacy the Office for the Procurement Regulator (OPR), and membership support were with respect to and substantively discussed the draft regulations, challenges at the Customs and Excise Container as well as the timetable for implementation. In Examination Station (CES) during the peak particular, the TTMA has upheld its advocacy (Christmas) season, as well as the ongoing lobby for enhancement of local content in public for the implementation of container scanners at procurement, to allow companies that meet the both ports. Success was attained on both fronts – requirements for state contracts to receive fair TTMA’s work assisted in an ease in the bottleneck treatment in the bidding process. at the CES, which was much needed for faster delivery of cargo. It has also been reported that Given the measured pace of the OPR and its work both ports have operationalised their container on finalising the regulations, it is anticipated that scanners, which should markedly improve the they may come into effect in the upcoming year; speed of container examinations in the months the TTMA will continue to be very targeted and and years ahead. strategic in its approach to ensuring the best interest of our manufacturers, and the country at large regarding fair and transparent public EMPLOYMENT procurement. The Business Development Unit significantly increased its support for the membership in terms of employment levels, via its well-established INDUSTRIAL RELATIONS • facility – TTMA Careers – which continues to be The reform of the Industrial Relations Act remains offered as a free service to the membership. high on the agenda of the TTMA. In addition to collaboration with the Ministry of Labour, other Over the course of the year, there has been a state agencies and trade unions, the TTMA notable increased in the volume of vacancies being held a major membership sensitization forum posted (and by extension filled) through the site, that focused on Industrial Relations and Labour making it far more comparable to conventional Productivity (given their clear correlation). This online recruitment services. has improved the level of awareness and clarity amongst the membership regarding its role, In the upcoming year, promotional efforts, along obligations and responsibilities as employers, with dialogue with the membership to meet their but also enhanced knowledge on rights and opportunities to enhanced the productivity of their employees.
16 ANNUAL REPORT 2018 specific employment needs, will be increased to SUPPORT TO FLOOD VICTIMS IN 2018 ensure that issues of employment volume and The TTMA engaged in a nationwide flood quality are more adequately addressed. This will relief effort during the months of October and be facilitated, in part, through collaborative work November 2018, providing support to hundreds with the TTMA’s Advocacy Committee. of households in various flood affected areas across the country. The TTMA recognized the severity of the flood impact, and immediately NEW DATABASE DEVELOPMENT responded to the urgent needs of citizens in flood This operational and administrative exercise affected areas. was designed to improve the expansiveness of internal (TTMA’s membership), local, regional and In total, approximately four thousand (4000) extra regional market information, with a view hampers were distributed to flood affected towards more strategic match making between citizens, primarily from the areas of Greenvale, our members and export markets. The exercise La Horquetta; Sangre Grande; Bamboo Village; commenced in late 2018, was well underway at Kelly Village; Laventille; Pointe-a-Pierre; Rio Claro; the time of this report, and is expected to be Guanapo; San Rafael; Oropune; Mayaro and a completed by mid-2019. The ultimate goal is to number of other districts. Hampers were also strengthen existing business relationships through delivered to a few regional corporations, as well as more effective supply and logistics chains, and directly to several schools nationwide. The TTMA also create new business opportunities through also responded to the call of the Ministry of Trade untapped distribution networks. and Industry, which in turn delivered hampers to other affected areas. MEMBER VISIT PROGRAMME The Business Development Unit commenced While the coordination of the exercise was an in-depth member visit programme during done by the TTMA Secretariat, the hampers the year, which includes discussion with key provided would not have been possible without personnel on areas for membership support, as the tremendous contributions of our members well as factory tours to gain a better appreciation in the Food & Beverage, Printing for their business operations. This programme & Packaging, Household, and has allowed the BDU to be much more targeted Construction & Building and specific in its approach to resolving issues of Materials sub-sectors. varying magnitudes, build on existing member relationships, and establish new ones.
Quite a few members have indicated their interest in meeting with the TTMA Secretariat at the start of 2019; the BDU will work along with the Trade and Marketing Units to ensure as much coverage of the membership, which will be the most useful measure of success.
17 ANNUAL REPORT 2018 The TTMA applauds the efficiency and generosity of the members that responded to our call to assist in a time of significant need.
In total, the TTMA received contributions from its members in both cask and kind; with respect to cash donations, just under $100,000.00 was received from the membership. Additionally, $136,650.00 in contributions were made by the general public from the Fund Me initiative for this drive, an initiative that the TTMA was instrumental in establishing.
The TTMA stands ready and willing to extend its support to citizens in future cases of national emergency needs, as the Association considers it an important aspect of its Corporate Social Responsibility.
18 ANNUAL REPORT 2018 19 ANNUAL REPORT 2018 MARKETING UNIT 2018-2019
The Trinidad & Tobago Manufacturers’ Association (TTMA) held its 62nd Annual General Meeting (AGM) and AGM Business Breakfast at Hilton Trinidad & Conference Centre on Wednesday 11th April, 2018. The meeting was well attended by TTMA’s members of the manufacturing and non- manufacturing business community.
ANNUAL GENERAL MEETING (2018) The President’s Annual Report (2017) was delivered, which focused on the many successes of the Association in Trade Promotion, Business Development, Tax Incentives and Seminars. With regard to the constitution of the Board of Directors, two (2) members of the Board stepped down as follow: • Mr. Ashmeer Mohamed • Mr. Colin Sabga Both persons did not stand for re-election, however Mr. Sabga was elected as the Corporate Secretary. Mr. Robin Lewis, Ms. Franka Costelloe and Mr. Anthony Farah were constitutionally due to resign but stood for re-election. Mr. Gary Awai and Mr. John De Silva came on as new Directors. By consensus, Mr. Christopher Alcazar was nominated as President of the TTMA for his second term in office
PROUDLY T&T INITIATIVE The Marketing Unit continued the roll out of the Proudly T&T initiative that was launched late in 2017. In 2018, 5 Proudly T&T videos were completed which highlighted the inner workings of the participating companies in an edited 1minute and 30 second video. A Proudly T&T jingle was also produced and played on the radio during the last five (5) months of 2018. A Proudly T&T 15 second advertisement for television was also produced and was played on CNC3 during the last five (5) months of the year.
20 ANNUAL REPORT 2018 The positive response from companies to the initiative was a good indicator of its success, with over 60 companies using the logo in various forms: on their packaging, delivery vehicles, company websites, in their advertisements and on their stationery. Proudly T&T also had a significant presence at TIC2018 with more than 50% of the local companies using the Proudly T&T logo in their booth designs.
MEMBERSHIP COMMITTEE was for TTMA members to host the free event The Marketing Unit also embarked on an and in so doing, use the opportunity to showcase aggressive membership drive. The member their brand. In 2018, the venues for the Business prospectus brochure was redesigned to highlight After Hours were: the House of Angostura with an the benefits joining the TTMA to the membership, attendance of 53 persons; the Petrea Hall, Centre while making it more visually appealing. The results of Excellence with an attendance of 43 persons; of this drive were encouraging, with a recognition MDC-UM with an attendance of 36 persons and of the value of being a member of the TTMA, the CEO’s luncheons at Jaffa at the Oval and which allowed the membership to grow from 429 Krave. in January 2018 to 500 by April 2019. The membership committee also sought to The need for quarterly, informal networking begin promoting TTMA members on various sessions for the membership committee and as TTMA platforms- Facebook, TTMA Website and such, quarterly sessions called “Business After Instagram. For the year 2018, 48 TTMA members Hours” were introduced. The concept considered were promoted across the various platforms.
TTMA MEMBERSHIP GROWTH 2015-2019
550
500
450
400
350 Membership Si e
300 Membership Si e
250
200 April 15 April 16 April 17 April 18 March 19
GRAPH SHOWING THE GROWTH OF THE TTMA MEMBERSHIP FROM APRIL 2015 TO THE END OF MARCH 2019
21 ANNUAL REPORT 2018 TRADE UNIT 2018-2019
In 2018, the Trade Unit continued its main goal to support members of the Trinidad and Tobago Manufacturers’ Association (TTMA) through trade facilitation initiatives. TTMA’s trade facilitation efforts encompass representation of its members at various domestic, regional, hemispheric and international trade negotiation meetings. The Trade Unit is seen as the main advocate for trade facilitation and market access efforts between Government and the Private sector. Notwithstanding the difficulties in the trading environment, in 2018, the Trade Unit of the Trinidad and Tobago Manufacturers’ Association (TTMA) continued to assist the trade facilitation efforts.
COMMITTEE MEETINGS The objective of the committee is to continuously During 2018, the Trade Unit conducted several provide dialogue among affected stakeholders on committee meetings in an effort to develop an the opportunities and the challenges encountered enabling trade and business environment for the in trading environment. The committee facilitated membership. presentations in 2018 with different Regulatory bodies. Further, the committee hosted sessions STANDING COMMITTEE ON TRADE that affected our members, including discussions AND RELATED MATTERS on intra-regional trade in sugar and Members were able to discuss directly with the Ministry of Trade and Industry and other regulatory bodies through this committee to discuss the current trade agreements, trade facilitation issues, regulatory challenges and other matters. CROSQ’s Regional Standard Labelling of Foods manufacturers associations in CARICOM). TTMA – Pre-packaged Foods – Specification. Details of will continue to participate in the development of these sessions are provided below: this standard.
1. The committee hosted a meeting between EXPORT MARKETING COMMITTEE sugar producers in CARICOM and local In 2018, the meetings under this committee manufacturers to discuss intra-CARICOM trade of sought to increase market intelligence and sugar. The session allowed both parties to discuss advance the export potential of firms. The the supply of sugar currently available and the committee also kept abreast of trade negotiations, requirements of manufacturers. Subsequent to provided guidance on markets of interest for the meeting, manufacturers were provided with trade missions and discussed problems faced by contact information so that dialogue with the manufacturers trading with other countries. The producers would continue. TTMA continues to committee continued to monitor its framework monitor the development of the sugar industry. of commissioning of agents in various markets; whose role is to assist in the exposure of TT goods. The agents were expected to provide The committee also facilitated meetings 2. market intelligence, identify distributors and even on Labelling of Foods – Pre-packaged Foods assist in the registration of products. Additionally, – Specification. Emphasis was placed on the in November 2018, the Committee participated requirements for front of pack labelling, in CARICOM Secretariat’s inaugural Consultations as CROSQ’s proposals bore concerns with the Private Sector (via videoconference), for local manufacturers. Feedback which consisted of CARICOM Secretariat and from the manufacturers has been various private sector organizations throughout provided to various national the region. stakeholders (such as the Ministry of Health) and also Regional stakeholders (such as the various
23 ANNUAL REPORT 2018 JAMAICA With regards to the trade mission to Jamaica, a total of twenty-six (26) participants from seventeen (17) companies attended the trade mission. The delegation was led by the President of TTMA and the Permanent Secretary of the Ministry of Trade TRADE and Industry. The mission also had the participation of exporTT. The mission was successful in that the MISSIONS majority of participants stated that they were very In 2018, TTMA conducted two (2) trade pleased with the outcome of the trade mission. missions. They were to Jamaica in April The overall purpose of the Trade Mission was 2018 and Guyana in October 2018. to promote, increase and improve the bilateral relations between Trinidad and Tobago and Jamaica. The trade mission coincided with Expo Jamaica and thus participants were able to attend the show as part of the trade mission.
GUYANA The Trinidad and Tobago Manufacturers’ Association (TTMA) embarked on a trade mission to Guyana from October 16th to 20th, 2018. The delegation was led by the CEO of TTMA and the CEO of exporTT. The mission was successful in that the majority of participants stated that they were very pleased with the outcome of the trade mission. It should be noted that there were signing of MOUs by some Trinidad and Tobago participants with business counterparts in Guyana. The overall purpose of the Trade Mission was to promote increase and improve the bilateral relations between Trinidad and Tobago and Guyana. As a direct result of the trade mission, participants reported of meeting new customers and strengthening existing customers. Strong relationships are vital to successfully doing business in Guyana and the trade mission was a timely opportunity to reinforce existing business connections and create new links.
24 ANNUAL REPORT 2018 ILLICIT TRADE TRADE NEGOTIATIONS In 2018, the officer on illicit tradedesk continued • In terms of the TT- Guatemala, there has been its work on investigating cases and increasing continued work to move closer to ratification. awareness of this area among its membership. Trinidad and Tobago has been corresponding with Establish in 2017, the officer is tasked with the the Government of Guatemala on the treatment function to assist in building capacity, strengthen of goods under the agreement. partnerships with key agencies and implement strategies to combat the illicit trade in the • In terms of existing TT- Panama partial scope Manufacturing Sector. The officer in charge was agreement, the Trade Unit continued awareness able to conduct several activities to increase the of this agreement through a ‘Doing Business awareness of illicit trade in 2018. These include: Seminar” where members were provided information on the agreement, registration of • Hosted a seminar in the first half of 2018 on products into the market and also investment illicit trade during the Trade and Investment opportunities. It should be noted that the date Convention (TIC). A total of 25 persons from a for the joint administration meeting is yet to be wide spectrum of sectors were in attendance. convened. It was reported that the National co-ordinators from both countries have been established for the agreement in order to convene • Held meetings with strategic agencies such as Intellectual Property Office and Chemistry, Food the meeting. and Drug Division of the Ministry of Health. • In terms of CARICOM-Bilateral trade agree- ments, there were no Joint council meetings to • Held meetings with several affected members to build case studies discuss these bilateral agreements however, there were hosting of preparatory meetings with the CARICOM Secretariat on different CARICOM- Wrote on several media such as the Business • Bilateral Trade Agreements. TTMA expects the Guardian and other noted Business magazines in hosting of meetings in 2019. order to increase the awareness of illicit trade in Trinidad and Tobago. Meetings – National, Regional and International The Trade Unit attended several committee One of the major accomplishments in 2018 was the meetings chaired by the MTI including the Market establishment of the Illicit Trade working group. Access Sub-Committee meetings, the Trade The group that comprises of TTMA’s members Co-ordinating Committee meeting, the National met in the last quarter of 2018 and was able to Trade Facilitation Committee meetings and discuss core concerns and develop strategies to also special meetings. Also, the Unit attended address illicit trade. meetings hosted by other Ministries (including the Ministry of Health’s Food Advisory Committee) and government agencies.
25 ANNUAL REPORT 2018 WORLD TRADE ORGANIZATION CARIBBEAN EXPORT’S ADVANCED AGREEMENT ON TRADE FACILITATION MARKET INTELLIGENCE TRAINING FOR The World Trade Organization (WTO) Trade BUSINESS SUPPORT ORGANIZATIONS Facilitation Agreement (TFA) entered into force on In November 2018 TTMA participated in Caribbean February 22, 2017. The agreement requires WTO Export’s Advanced Market Intelligence Training members to implement measures to expedite the for Business Support Organizations. The session movement, release and clearance of goods, such was facilitated by experts from the International as measures on transparency and governance, Trade Centre (ITC), and focused on the use of customs and other agencies’ border procedures, ITC’s web tools (Market Access Map, TradeMap). and fees and formalities. Trinidad and Tobago as This training enhanced the capacity of conducting a member of WTO established a National Trade secondary research that can aid manufacturers in Facilitation Committee to oversee the domestic determining the feasibility when choosing export co-ordination of the agreement. In 2018, the markets. National Trade Facilitation Committee was able to identify its Category B and C projects and present CARIFORUM-EU CONSULTATIVE to Cabinet for approval. COMMITTEE MEETING The Trade Unit attended the annual CARIFORUM– COUNCIL ON TRADE AND ECONOMIC EU Consultative Committee Meeting in December DEVELOPMENT MEETING (COTED) 2018. The meeting promoted dialogue and co- TTMA attended the COTED meetings in April 2018 operation between representatives of organizations and November 2018 respectively. The meeting of civil society including the academic community, examined the trade and economic landscape and the social and economic partners. At this of the CARICOM region. Member issues were meeting, the status of the ACP relations was addressed at the meeting such as convening of provided. It was also reiterated at the meeting CARICOM/Costa Rica Joint Council, status of intra- that by both EU and the CARIFORUM parties of regional trade in sugar, change in the rule of origin the need for better monitoring of the Economic in the Revised Treaty of Chaguaramas, review of Partnership Agreement (EPA) implementation and the CARICOM Common External Tariff and the for the inclusion of the civil society organizations rules of origin, and review of the US- Caribbean to be part of the monitoring of the agreement. relations in order to lobby for the renewal of the The committee discussed the lack of information Caribbean Basin Initiative. on the trade in services in CARIFORUM and the need for social and economic indicators in the monitoring of the EPA. The group also discussed the dock dues imposed by the Overseas French Territories and how this area can be addressed.
26 ANNUAL REPORT 2018 STRENGTHENING TIES WITH DIPLOMATIC CORPS AND STAKEHOLDERS In 2018, the Trade Unit conducted seminars with several diplomatic corps in order to increase the knowledge and information on Latin American markets. These seminars were highly attended by many companies from different sectors. The seminars discussed understanding the market characteristics, import requirements, business culture and trade agreements (if any) with these Latin American countries.
TTMA held a session with the Ministry of Trade and Industry and Ernst and Young on incentives offered to local manufacturers. The Association contributed to the development of Trinidad and WHAT TO Tobago’s trade policy via consultations with the EXPECT IN 2019? Economic Commission for Latin America and the The Trade Unit plans to keep well-informed Caribbean (ECLAC). Also, TTMA met with the of all trade and economic issues. The Unit will Inter-American Development Bank (IDB) to discuss ensure that members are kept abreast of trade opportunities for trade financing. Furthermore, the negotiations and advocate on the members’ Association participated in IICA’s Accountability behalf. This would be achieved by actively Seminar and its national consultation in support participating in the various national and of the Preparation of the IICA Medium Term Plan regional trade-related meetings that would be 2018-2022. held. Furthermore, the Unit would continue to strengthen ties with the Diplomatic Corps and other stakeholders.
Two trade missions will be held in 2019. This is part of TTMA’s effort to assist companies in expanding their markets. Trade missions are seen as one of the many ways to explore and succeed in foreign markets. Trade missions are about opening doors and developing long- term trade and investment opportunities. Participants will learn about doing business in the host market(s).
27 ANNUAL REPORT 2018 The 19th Anniversary of the Trade and Investment Convention (TIC 2018) took place from Thursday 5th July – Sunday 8th July, 2018 at the Centre of Excellence, Macoya, Trinidad and Tobago.
As we recognized this milestone, TIC has undergone significant rebranding in an effort to create and foster business locally, regionally and internationally. As such, the theme of TIC 2018 was “New Horizons, New Opportunities!”. This year’s theme
28 ANNUAL REPORT 2018 signified the core purpose of the Trade and Republic, Grenada, Guyana, Jamaica, Guatemala, Investment Convention, which is the expansion Guadeloupe, Suriname, Canada and the United of Business Opportunities for manufacturers and States to name a few. service providers across the region. It serves as an impetus for regional and international trade TIC 2018 continued the promotion of Business and the possibilities for finding new markets for Networking by hosting Business to Business both macro and micro enterprises. areas during the convention with a total of eight meeting rooms and a meeting lounge; further TIC 2018 was deemed a resounding success a collaboration with exporTT saw a meeting across the board, as it attracted over 15,200 engagement with 11 specialized buyers in a attendees/participants; the highest recorded dedicated “dating” business lounge. It was in participation of the convention’s history. The these areas that participants were able to conduct Exhibitor population consisted of 212 registered private one on one meetings, which were pre-set companies occupying 253 booths, 3 pavilions before the convention days or were convened as and 6 sponsor pavilions, representing local, the convention progressed. This will always be regional and international markets. A significant the key aspect of TIC as it ensures that substantial remainder of companies exhibited under other business deals will take place. Further to this set business and/or chambers and agencies from meetings, numerous meeting encounters took across the region. place in the booth space of respective exhibitors, who found this more conducive to their needs. There were over 23 business sectors showcased and represented in TIC 2018 with Food & The TIC 2018, Marketing Campaign entailed the Beverage and Construction having the largest utilization of several mediums for convention number of participants. However, significant promotion; this included traditional forms of media numbers were also noted from the Printing, such as, magazines, newspaper advertising, radio Publishing, Packaging & Paper Convertors and television during primetime hours. Other sector, the Information and Communication mediums such as digital billboards and social Sector and the Automotive Sector. The number media promotions were used to ensure that the of exhibitors, attendees and diverse sectors business and consumer public were aware of the represented, indicates the continued interest TIC 2018. in local companies (manufacturers and service providers) as well as regional and international TIC 2018 was sponsored by the Ministry of Trade companies wanting to take advantage of the and Industry, First Citizens, TSTT/Blink-Bmobile, exposure to new customers and markets that Balroop’s and S.M. Jaleel Company Limited, TIC facilitates. TIC 2018 saw participants from which significantly contributed to the overall over 30 countries including Anguilla, Antigua and success of the event. Barbuda, Barbados, Bahamas, Cuba, Dominican
29 ANNUAL REPORT 2018 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
30 ANNUAL REPORT 2018 CONTENTS
AUDITORS’ REPORT 32
STATEMENT OF FINANCIAL POSITION 34
STATEMENT OF COMPREHENSIVE INCOME 35
STATEMENT OF CHANGES IN EQUITY 36
STATEMENT OF CASH FLOWS 37
ACCOUNTING POLICIES 38-40
NOTES TO THE FINANCIAL STATEMENTS 41-44
SCHEDULE TO THE FINANCIAL STATEMENTS 45
31 ANNUAL REPORT 2018 INDEPENDENT AUDITOR’S REPORT To the members of Trinidad and Tobago Manufacturers’ Association
OPINION We have audited the accompanying financial statements of Trinidad and Tobago Manufacturers’ Association, which comprise the statement of financial position as at 31 December, 2018, the statements of comprehensive income, changes in equity and cash flows, and related notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Trinidad and Tobago Manufacturers’ Association as at 31 December, 2018, of its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities.
BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Association in accordance with International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standard for Small and Medium-sized Entities, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
32 ANNUAL REPORT 2018 In preparing the financial statements, management is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Association’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Chartered Accountants Port of Spain Trinidad, West Indies 29th March 2019
33 ANNUAL REPORT 2018 STATEMENT OF FINANCIAL POSITION
NOTES AS AT 31ST DECEMBER 2018 2017 $ $ ASSETS Non-current assets Property, plant and equipment 2 9,140,931 9,374,615
CURRENT ASSETS Cash and cash equivalents 3 2,600,540 2,044,048 Receivables and prepayments 4 1,503,829 1,352,617 Amounts due from related parties 5 229,947 15,100 4,334,316 3,411,765
TOTAL ASSETS 13,475,247 12,786,380
EQUITY AND LIABILITIES Capital and reserves Operational fund 12,396,377 11,792,204
Non-current liabilities Borrowings
CURRENT LIABILITIES Taxation payable 27,111 Subscriptions and deposits received in advance 6 513,008 455,728 Trade and other payables 7 538,751 538,448 TOTAL LIABILITIES 1,078,870 994,176
TOTAL EQUITY AND LIABILITIES 13,475,247 12,786,380
The accounting policies on pages 38 to 40 and the notes on pages 41 to 44 are an integral part of these financial statements.
On 29th March 2019 the Board of Directors of Trinidad & Tobago Manufacturers’ Association authorised these financial statements for issue.
______President ______Director
34 ANNUAL REPORT 2018 STATEMENT OF COMPREHENSIVE INCOME
NOTES AS AT 31ST DECEMBER 2018 2017 $ $ REVENUE Special events 5,768,384 4,777,947 Rental of building 1,576,921 1,592,280 Subscriptions from members 5 1,681,626 1,555,905
9,026,931 7,926,132
DIRECT COSTS Special events (4,702,919) (4,017,691)
GROSS SURPLUS 4,324,012 3,908,441 Interest Income 4,466 12,111 4,328,478 3,920,552
EXPENSES Administrative (3,638,289) (3,091,082)
OPERATING SURPLUS 8 690,189 829,470 Finance costs 9 - (21,902)
NET SURPLUS BEFORE TAXATION 690,189 807,568 Taxation 10 (86,016) (34,858)
NET SURPLUS AFTER TAXATION 604,273 772,710
The accounting policies on pages 38 to 40 and the notes on pages 41 to 44 are an integral part of these financial statements.
35 ANNUAL REPORT 2018 STATEMENT OF CHANGES IN EQUITY
OPERATIONAL FUND $ YEAR ENDED 31 DECEMBER 2017
Balance at 1 January 2017 11,019,494
Net surplus for 2017 772,710
Balance at 31 December 2017 11,792,204
YEAR ENDED 31 DECEMBER 2018
Balance at 1 January 2018 11,792,204
Net surplus for 2018 604,173
Balance at 31 December 2018 12,396,377
The accounting policies on pages 38 to 40 and the notes on pages 41 to 44 are an integral part of these financial statements.
36 ANNUAL REPORT 2018 STATEMENT OF CASH FLOWS
AS AT 31ST DECEMBER 2018 2017 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Operating surplus 690,189 829,470 Adjustments for items not requiring an outlay of funds: Depreciation 443,615 399,574 Interest income (4,466) (12,111)
Operating surplus before changes in working capital 1,129,338 1,216,933 Increase/(decrease) in subscriptions and deposits received in advance 57,280 276,059 Increase/ (decrease) in trade and other payables 303 324,896 Increase in receivables and prepayments (151,212) (452,099) (Increase)/decrease in amounts due from related parties (214,874) 71,870
Cash generated from operations 820,862 1,437,659 Interest paid - (21,902) Interest received 4,466 12,111 Taxation paid (58,905) (55,367)
NET CASH FROM OPERATING ACTIVITIES 766,423 1,372,501
INVESTING ACTIVITIES Purchase of plant and equipment (209,931) (355,083)
NET CASH USED IN INVESTING ACTIVITIES (209,931) (355,083)
FINANCING ACTIVITIES Repayment of borrowings - (1,819,618)
NET CASH USED IN FINANCING ACTIVITIES - (1,819,618)
INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (556,492) (802,200) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,044,048 2,846,248
CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 3) 2,600,540 2,044,048
The accounting policies on pages 38 to 40 and the notes on pages 41 to 44 are an integral part of these financial statements.
37 ANNUAL REPORT 2018 ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2018
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented.
a) Basis of preparation These financial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities under the historical cost convention, as modified by the revaluation of available-for-sale investments. The preparation of financial statements in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company’s accounting policies.
b) Financial instruments Financial instruments carried on the statement of financial position include cash and cash equivalents, receivables, accounts payables and borrowings, and are stated at their approximate fair values determined in accordance with the policy statements disclosed.
c) Use of estimates The preparation of financial statements in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
d) Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated on the straight-line basis at rates estimated to write off the cost of each asset to their residual values over their estimated useful lives, as follows:
Building - 2% Furniture, fittings and equipment - 10% - 33.3% Land - 0%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.
Interest costs on borrowings to finance the construction of property are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are expensed to the statement of comprehensive income.
38 ANNUAL REPORT 2018 d) Property, plant and equipment (continued) Profits or losses on disposals of property, plant and equipment are determined by comparing proceeds with the carrying amount and are included in administrative expenses in the statement of comprehensive income.
Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use. e) Revenue recognition Members’ subscription income is recognised in the year to which it relates, with payments in advance being deferred to the period to which they relate. Special events income is recognized at the time that the event is held. Interest income is recognised on an effective yield basis. f) Foreign currencies Foreign currency transactions are translated using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the statement of comprehensive income. Monetary assets and liabilities denominated in foreign currencies are translated into Trinidad and Tobago dollars at the exchange rates prevailing at the yearend date. All exchange gains and losses are included in the statement of comprehensive income when incurred. g) Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost and comprise cash in hand, cash at bank and funds held in Money Market Funds. Bank overdrafts are included within borrowings in current liabilities on the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents also include bank overdrafts. h) Trade receivables Trade receivables are carried at original invoice amount less provision made for impairment of these receivables. A provision for impairment of trade receivables is established when there is objective evidence that the Association will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the carrying amount and the recoverable amount. Provisions for impairment of receivables are included in the statement of comprehensive income. i) Pensions The Association pays contributions to privately administered defined contribution pension schemes. A defined contribution pension scheme is a plan which the Association pays fixed contributions into a separate fund. Once the contributions have been paid, the Association has no further payment obligations. The regular pension contributions are included in staff costs in the period in which they are due.
39 ANNUAL REPORT 2018 j) Leases Leases of property, plant and equipment where the company has substantially transferred all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the leases at the lower of the fair value of the leased property or the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables.
The interest element of the finance cost is charged to the statement of comprehensive income over the lease period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term.
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases (e.g. property leases). Payments made under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.
k) Borrowings Borrowings are recognized initially at the proceeds received, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost using the effective yield method; any difference between proceeds (net of transaction costs) and the redemption value is recognized in the statement of comprehensive income over the period of the borrowings.
l) Provisions Provisions are recognized when the Association has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.
m) Grants Grants are recognized at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions.
Grants relating to costs are deferred and are included in liabilities. They are recognized in the statement of comprehensive income over the period necessary to match them with the net expenditure for the year, which they are intended to compensate.
40 ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
1 Incorporation and activities The Association, limited by guarantee, is incorporated and domiciled in the Republic of Trinidad and Tobago with its registered office located at #42 Tenth Avenue, Barataria. The Association’s activities are to promote and encourage the development of local manufacturing operations and to assist in problems relating to manufacturing industries in Trinidad and Tobago.
2 Property, plant and equipment Building & Office Land Car Park Equipment Total Year ended 31 December 2018 $ $ $ $ Opening net book amount 2,437,352 6,421,544 515,719 9,374,615 Additions - 134,110 75,821 209,931 Depreciation charge - (315,738) (127,877) (443,615) Closing net book amount 2,437,352 6,239,916 463,663 9,140,931
At 31 December 2018 Cost 2,437,352 9,618,463 2,221,800 14,277,615 Accumulated depreciation - (3,378,547) (1,758,137) (5,136,684) Net book amount 2,437,352 6,239,916 463,663 9,140,931
Year ended 31 December 2017 Opening net book amount 2,437,352 6,730,208 251,546 9,419,106 Additions - - 355,083 355,083 Depreciation charge - (308,664) (90,910) (399,574) Closing net book amount 2,437,352 6,421,544 515,719 9,374,615
At 31 December 2017 Cost 2,437,352 9,484,353 2,145,979 14,067,684 Accumulated depreciation - (3,062,809) (1,630,260) (4,693,069) Net book amount 2,437,352 6,421,544 515,719 9,374,615
2018 2017 3 Cash and cash equivalents $ $ Cash at bank 2,582,713 2,028,014 Cash in hand 7,842 6,000 Money market funds 3,433 3482 Undeposited funds 6,552 6,552 2,600,540 2,044,048
The Money Market Funds have been classified as a cash equivalent because management will be using the accounts for working capital requirements within the next year. The interest rate at the year-end was 1.00%.
41 ANNUAL REPORT 2018 2018 2017 $ $ 4 Receivables and prepayments Receivables 1,362,059 1,161,619 Less: Provision for bad debts (60,000) - 1,302,059 1,161,619 Prepayments 154,414 150,509 VAT refund 47,356 40,489 1,503,829 1,352,617
As at 31 December 2018, Trade Receivables of $1,302,059 (2017: $1,161,619) were fully performing. Trade receivables are non interest bearing and due upon receipt or on 30 days term. The ageing analysis of Receivables is as follows:
TOTAL NEITHER PAST DUE PAST DUE BUT NOT IMPAIRED NOR IMPAIRED 30-60 DAYS 60-90 DAYS >90 DAYS
2018 1,362,059 281,681 306,591 162,281 611,506
2017 1,161,619 159,121 99,689 67,546 835,263
5 Related Parties Transactions which included related parties related parties totalled $229,947 in 2018. This would have comprised of subscriptions and special events participation paid by the organisations affiliated with our current Board of Directors.
1. The value of transactions carried out during the year with related parties is as follows:SALES PURCHASES $ $
Aerogas Processors 9,177 - Ansa Polymer Limited 28,098 - CGA Limited 34,620 - Coosal Group of Companies 34,524 - Development Finance Limited 21,883 First Citizens Bank Limited 594,194 - Kaleidoscope Paints Limited 57,464 - Label House Group 37,381 32,237 Lifetime Roofing Solutions 39,834 - MDCUM Limited 8,646 2,700 Nestle Trinidad & Tobago Limited 49,668 - S M Jaleel & Company Limited 45,779 - Trinidad Cement Limited 42,679 - Unilever Caribbean Limited 105,602 - Vemco Limited 104,237 6,451
1,213,787 41,388
42 ANNUAL REPORT 2018 2. The amounts due from related parties as at year end are as follows:
2018 2017 $ $ CGA Limited 13,620 - First Citizens Bank Limited 150,000 - K.C. Confectionery Limited - 400 Kaleidoscope Paints Limited 13,154 - Label House Group 15,720 - MDCUM Limited 2,100 S M Jaleel & Company Limited - 13,050 Trinidad Cement Limited 1,688 1,650 Unilever Caribbean Limited 1,650 - Vemco Limited 32,015 -
229,947 15,100
At as 31 December 2018, the amounts due from related parties shall be subsequently received.
Key management compensation Key management compensation amounted to $587,928 (2017 -$525,360) 2018 2017 $ $ Subscriptions revenue Ordinary members 1,208,950 1,225,368 Associate members 472,675 330,537 1,681,625 1,555,905
6 Subscriptions and deposits received in advance Members’ subscriptions received in advance 30,299 21,865 Deposits received in advance for TIC exhibits 482,709 433,863 513,008 455,728
7 Trade and other payables Trade payables 395,938 498,932 Accrued liabilities 142,813 39,516 538,751 538,448
8 Operating surplus The Association’s operating surplus includes the following items: Staff costs (note 11) 2,398,642 2,122,335 Depreciation 443,615 399,574 Telephone, electricity and utilities 181,565 174,279 Insurance 160,600 139,484
43 ANNUAL REPORT 2018 2018 2017 $ $
9 Finance costs Interest expense - 21,902
10 Taxation Business levy – prior year adjustment 8,946 -- Green fund levy – prior year adjustment 12,195 -- Business levy – current year 37,781 23,239 Green fund levy – current year 27,094 11,619 Total tax charge for the year 86,016 34,858
The company’s effective tax rate differs from the statutory rate as a result of the differences shown below:
Profit before taxation 690,189 807,568 Corporation tax calculated at 30% / 25% 207,057 202,886 Effects of: Tax exempt income (820,388) -- Effects of other charges and allowances 613,331 -- Business levy – prior year adjustment 8,946 -- Green fund levy – prior year adjustment 12,195 -- Business levy – current year 37,781 -- Green fund levy – current year 27,094 -- 86,016 34,858 11 Staff costs The total staff costs for the year were as follows:
Wages and salaries 2,203,025 1,953,027 Social security costs 158,857 134,748 Pension costs 36,760 34,560 2,398,642 2,122,335
At 31 December 2018, the Association had 21 employees (2017: 19).
44 ANNUAL REPORT 2018 SCHEDULE TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017 $ $ Administrative expenses Salaries and other staff costs 2,398,642 2,122,335 Travelling and subsistence 244,396 173,726 Legal and professional fees 205,176 157,484 Marketing 142,604 115,353 Depreciation 127,877 90,910 Telephone and postage 125,381 100,592 Insurance 121,701 99,876 Bad debts 60,000 29,635 Medical and staff welfare 45,925 39,563 Audit fees & accounting fees 43,760 44,400 Printing, stationery and general office 42,675 42,470 Computer expenses 24,708 18,488 Bank charges 14,645 20,815 Other 12,633 - Entertainment 11,129 18,934 Security 7,080 7,080 Subscriptions 4,174 5,524 Rental of equipment 2,922 2,922 Duties, freight and clearing 1,531 375 Donations 1,330 600
3,638,289 3,091,082
45 ANNUAL REPORT 2018 NOTES
46 ANNUAL REPORT 2018 47 ANNUAL REPORT 2018 48 ANNUAL REPORT 2018 Trinidad and Tobago Manufacturers’Association ANNUAL REPORT 2018